On Wednesday, follow up selling in indices continued for yet another session. Nifty trading around day’s low below the nearest important technical and derivative support level. In such negativity, now it’s time to look for opportunities in the defensive sector to hedge portfolio and one stock from the defensive IT sector, grabbed investors’ attention on D-street, as it outperformed its peers by rallying more than 11% despite negative sentiments.
The stock is Zen Technologies Limited was incorporated in 1996, designs, develops and manufactures combat training solutions for the training of defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces and paramilitary forces. It offers land-based military simulators, driving simulators and mining and special equipment simulators. Zen Technologies is headquartered in Hyderabad, India with offices in India and the USA.
Technically on the weekly chart in the first week of February 2023, it registered a breakout from the 1.5 years consolidation range of Rs 257 on the higher side and Rs 144 on lower side by making higher lows and lower highs. It rallied more than 61% after the breakout in just 10 weeks and made a new lifetime high of Rs 342 in April 2022. From thereon, it retraced almost 38% of its previous rally which also a support of 10 WMA. From this support level it again showed strength and headed towards a new high.
On daily charts, the stock registered a breakout from a bullish continuation pattern by rallying more than 11% with strong volumes which is above the 30-days average volume. The 5-13-26 daily moving averages indicate the strong momentum. Today it made a new lifetime high and closing above the level of Rs 342 is positive for the stock.
Such a powerful breakout at open sky territory can led follow up buying in the upcoming session. Breakout trader’s and long-term investors looking for a hedge to their portfolio can add this stock to their watchlist.
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